What are the top 10 global challenges in digital transformation?
Answer from top 10 papers
Digital transformation is a multifaceted process that presents a range of challenges for organizations worldwide. The literature identifies several key challenges that are commonly encountered:
1. **Port Infrastructure and Interconnection**: The complexity of port operations and the need for interconnection between various systems pose significant challenges (Mahmood et al., 2019).
2. **Rapid Technological Changes**: Organizations struggle with the pace of technological change, which can render digital transformation efforts obsolete quickly (Furjan et al., 2020).
3. **Organizational Resistance and Skills Gap**: Traditional businesses often face resistance to change and a lack of digital skills and expertise (Almeida, 2023).
4. **Legacy Systems and Cultural Barriers**: The presence of outdated legacy systems and cultural barriers within organizations can hinder digital transformation (Almeida, 2023).
5. **Cybersecurity and Data Privacy**: As digitalization advances, cybersecurity risks and data privacy concerns become more pronounced (Philippart, 2022).
6. **Regulatory Compliance**: Adhering to regulatory requirements adds complexity to digital transformation initiatives (Philippart, 2022).
7. **Governance and Culture**: Effective governance and a supportive culture are critical for the success of digital transformation, yet they are often challenging to establish (Syamsuddin et al., 2024).
8. **Market Evolution and Customer Demands**: Changing market conditions and evolving customer expectations require organizations to adapt quickly (Sandkuhl et al., 2020).
9. **Alignment of People, Process, and Technology**: Aligning these elements is crucial for successful digital transformation but is often difficult to achieve (Furjan et al., 2020).
10. **Barriers to Digital Servitization**: Manufacturing SMEs face organizational and customer-related barriers in their move toward digital servitization (Sandkuhl et al., 2019).
In summary, these challenges encompass technical, organizational, and strategic aspects of digital transformation. Addressing them requires a comprehensive approach that considers infrastructure, technology, human resources, culture, and market dynamics. By recognizing and proactively managing these challenges, organizations can better position themselves to leverage the benefits of digital transformation and maintain competitiveness in the global market (Almeida, 2023; Furjan et al., 2020; Mahmood et al., 2019; Philippart, 2022; Sandkuhl et al., 2019; Sandkuhl et al., 2020; Syamsuddin et al., 2024).
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